The company’s megacluster of chips for artificial-intelligence startup Anthropic will be among the world’s largest, it said, and its new giant server will lower the cost of AI as it seeks to build an alternative to Nvidia.

Both AWS and Nvidia are rushing to get their flagship AI offerings to market amid booming demand, though Nvidia shipments have been limited by supply chain constraints.

Amazon.com's cloud unit on Tuesday showed new data center servers packed with its own AI chips that will challenge Nvidia, with Apple coming aboard as a customer to use them. The new servers, based on 64 of Amazon Web Services' Trainium2 chips,

Amazon announced a new series of foundation models that aim to rival those from OpenAI, Anthropic and Meta, as part of a slew of AI announcements from the tech giant Monday. Why it matters: Amazon has been a key player in generative AI largely on the strength of its web services business,

Amazon says it is able to connect a greater number of chips together than Nvidia, helping customers save cost.

Amazon Web Services Inc. today unveiled its next-generation custom chip for high-efficiency artificial intelligence training and delivery with Trainium3 and announced the general availability of AWS Trainium2-powered cloud instances that will put high performance AI capabilities in the hands of customers.